RHI Magnesita announces adjusted pro-forma revenue of EUR2677.2m

RHI Magnesita saw pro-forma revenue up 11 per cent in 2017 to EUR2677.2m for its steel and industrial divisions. The results include consolidated 10-month results for RHI and two-month reporting for RHI Magnesita.

RHI Magnesita's two-month revenue amounted to EUR1946.1m, up 17.9 per cent over the previous year. Reported revenue from the Industrial division amounted to EUR577.6m. Reported EBITDA amounted to EUR56.7m in 2017 with a margin of 2.9 per cent.

Adjusted pro-forma revenue of the Industrial division grew by 2.6 per cent in 2017 to EUR658.8m, compares to EUR642.1m in 2016. Growth was led by the cement sector, says RHI Magnesita, especially in the second half of the year. Net debt amounted to EUR750.8m at year-end, compared to EUR298.8m in the previous year.

"The raw material crisis in China also influenced the demand for refractories, as some customers anticipated orders to secure supply," said RHI Magnesita.

Cash flow generation in 2017 was mainly driven by the increase in free cash flow from operations of EUR221.6m, an increase of 36.2 per cent over the EUR162.7m generated in 2016. The net cash flow from investing activities totalled a positive income of EUR33.3m, driven by the net cash inflow of EUR45.1m from acquired subsidiaries.

Additionally, the proceeds from the divestment businesses in the amount of EUR30.6m also led to the positive cash flow from investing activities. Net cash flow from financing activities reached EUR16.4m, which resulted from the funding raised related to the acquisition of Magnesita. RHI Magnesita had an overall cash generation of EUR271.3m in 2017.

The year 2017 resulted in the successful merger of RHI and Magnestia and admission of RHI Magnesita NV to the Premium Segment of the London Stock Exchange.